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Problem 21 Intro You've analyzed IBM's stock and expect it to deliver a return of 8% over the next year. The stock has a beta
Problem 21 Intro You've analyzed IBM's stock and expect it to deliver a return of 8% over the next year. The stock has a beta of 0.7. The risk-free rate is 2.5% and the expected market risk premium is 4.5%. Attempt 1/10 for 10 pts. Part 1 What is the security's expected alpha? 4+ decimals Submit Attempt 1/10 for 10 pts. Part 2 What is the security's expected alpha in equilibrium according to the CAPM? 0+ decimals Submit Submit assignment
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